PROPERTY DEVELOPERS have drawn [euro]420 million from theNational Asset Management Agency (Nama) out of [euro]590 million setaside since last March to complete building projects.
The working capital loans have been used by the likes of TreasuryHoldings, one of the 10 biggest borrowers in Nama, to complete largeprojects to be sold.
Two of the projects to have benefited from the Nama loans are theConvention Centre and the Montevetro office building in Dublin.Internet company Google is in negotiations to buy the Montevetrobuilding from Treasury in a sale encouraged by Nama.
Nama has approved property sales worth [euro]500 million in thefirst six weeks of the year by borrowers whose loans have beentransferred to the agency.
Some of the proceeds went to banks outside the Nama process,which had loans in syndicates with banks that have transferredloans.
This is in addition to asset sales of [euro]2 billion up to theend of 2010, the proceeds of which were shared with some non-Namafinancial institutions. About 90 per cent of the sales related to UKproperties where the market is stronger.
Some [euro]170 million remains undrawn in the working capitalfacilities made available by Nama to the biggest borrowers whosebusiness plans have been approved by it, according to sources closeto the State loans agency.
Of the top 30 borrowers, Nama has signed off on business planssubmitted by 12 developers and is in an advanced stage ofnegotiations on agreements with six other developers.
Nama is aiming to assess the business plans of the top 170borrowers, who will have loans of about [euro]60 billion with theagency by the end of this year.
These borrowers have loans in excess of [euro]75 million and willbe managed directly by Nama. The top 30 borrowers account for[euro]27 billion in loans.
The agency has acquired property and related loans with a facevalue of [euro]71.2 billion for [euro]30.2 billion. It willeventually acquire [euro]88 billion loans for a likely considerationof about [euro]37 billion, the State agency said last week.
Nama has approved 33 enforcement actions to seize assets. In somecases, the agency has offered a six-month probationary period beforetaking action against certain borrowers to assess their level of co-operation with the agency.
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